It emerged this week that Apple Computer and the Beatles’ company Apple Corps Ltd have entered into a new agreement concerning the use of the name “Apple” and apple logos, which replaces their 1991 Agreement.
Under this new agreement, Apple Computer will own all of the trademarks related to “Apple” and will license certain of those trademarks back to Apple Corps for their continued use.
In addition, the ongoing trademark lawsuit between the companies will end, with each party bearing its own legal costs, and the technology firm will continue using its name and logos on iTunes.
Commenting on the settlement, Steve Jobs, Apple’s CEO announced that:
“We love the Beatles, and it has been painful being at odds with them over these trademarks. It feels great to resolve this in a positive manner, and in a way that should remove the potential of further disagreements in the future.”
Speaking on behalf of the shareholders of Apple Corps, Neil Aspinall, manager of Apple Corps added:
“It is great to put this dispute behind us and move on. The years ahead are going to be very exciting times for us. We wish Apple Inc. every success and look forward to many years of peaceful co-operation with them.”
Under the 1991 agreement, Apple Corps had the right to use the apple logo for producing and selling music, while Apple Computer could use the logo for selling computers and computer software.
In 2003, when Apple Computer asked Apple Corps to make Beatles' songs available for the iTunes store, Apple Corps refused, and said that the computer company had broken the 1991 agreement.
After a hearing in April 2006, Mr Justice Mann gave his judgement the following month, coming down firmly on the side of the computer company in dismissing the Beatles' suit.
Although he agreed that Apple Corps has the exclusive right to use the logo for recorded music, even if sold in an intangible form like music downloads, he wrote: "What Apple Computer does is to take a musical recording, in the form of a digital version, and then carry out some technical processes to the file. That is not the sort of activity that a record company or record label would necessarily carry out in relation to musical content."
"I conclude that the use of the apple logo ... does not suggest a relevant connection with the creative work," wrote the Judge, in a ruling which surprised many, and which Apple Corps appealed. "I think that the use of the apple logo is a fair and reasonable use of the mark in connection with the service, which does not go further and unfairly or unreasonably suggest an additional association with the creative works themselves."
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